THE ANALYSIS OF IMPLEMENTATION OF GOOD CORPORATE GOVERNANCE (GCG) MECHANISM TOWARD CORPORATE VALUE

Abstract

This study aims to analyze the influence of corporate governance with the proxies of institutional ownership, management ownership, independent commisioners, audit committee, and size of directors toward company’s value listed on LQ45 category by using the company's annual report in Indonesia Stock Exchange from the period 2013 to 2017. The population in this study are the companies on the index LQ45 listed on the Indonesia Stock Exchange (IDX) from the period of 2013 - 2017. The type of data collected was secondary data. This research used purposive sampling method and 40 companies were selected. Methods of data analysis used descriptive statistics, classical assumption test, and multiple linear regression with SPSS. The results of this study indicate that the variables of independent commissioners, management ownership, audit committee have positive and significant effects on company’s value. While size of directors have negative effects on company’s value and institutional ownership have negative effects on company’s value.